Wool trades up on small quantity

THE wool market traded 1.9% higher this week and the Cape Wools Merino Indicator increased by 306 points to close at a value of R161.96 (clean).

On the Australian market, the EMI increased 1%, while the Cape Wools All Wool Indicator gained 0.5%.

A small amount of wool – only 6 863 bales – was offered for sale yesterday, of which 67% was rated average to inferior.

This resulted in keen competition for the better-quality good top-maker and spinner types.

Prices increased across the board, with the finer end benefiting most due to the trending good demand.

Buyers said the market had favoured the sellers.

This week saw the rand at R13.46 to the US dollar. The rand was unchanged against the US dollar compared with the average rate at the previous sale. The rand gained 1.2% against the euro, trading at R14.34.

The offering comprised 6 863 bales, of which 97.2% was sold.

Major traders were Modiano (2 803), Standard Wool SA (1 570), Lempriere SA (1 098) and Stucken & Co (874).

The average clean prices for the selection within the different micrometre categories for good top-making (MF5) long fleeces were: 18μm (micrometres) gained 2.7% to close at R191.80/kg; 18.5μm increased 2.5% to close at R183.96/kg; 19μm gained 2.7% to close at R179.54/kg; 19.5μm increased 3.1% to close at R170.25/kg; 20μm increased by 2.8% to close at R160.51/kg; 20.5μm moved up 1.2% to close at R150.43/kg; 21μm strengthened 0.6% to close at R147.24/kg; 21.5μm increased 2.3% to close at R145.52/kg; 22μm gained 2% to close at R142.93/kg and 22.5μm increased 2.2% to close at R143.75/kg.

The next sale is scheduled for February 15.

About 12 287 bales will be on offer.